Doc Holiday: Why is travel insurance so expensive?

Travel insurance is important, but why have prices skyrocketed in recent years?

Escape's Doc Holiday, Dilvin Yasa, answers your travel-related question.

Why is travel insurance so expensive? I have been quoted $2700 to do a 24-day European cruise and eight years ago we only paid $400 for a South Pacific cruise. It’s outrageous.

It most certainly is. The latest data from Finder shows the cost of travel insurance has increased by a staggering 87 per cent since before the pandemic, and this is largely because there’s significantly more financial risk involved with travel in the post-Covid-19 world.

Some of the key issues bumping up our premiums? An increase in the number of airline cancellations and delays, travellers becoming ill with Covid-19 before their trips and being forced to cancel or reschedule and, of course, the increase in airlines either losing or damaging baggage and personal items which also leads to travel insurance claims.

Unfortunately, it’s a cost we’re all going to have to wear for some time and, while it won’t make a huge difference to your bottom line, there are a couple of things you can do to reduce premiums. If you’ve already had a look at comparison sites, which would be my first recommendation, you can also search for promo codes for each insurance provider online (discounts are usually up to 15 per cent). You could also consider opting for a higher excess, giving you a cheaper policy.

You still won’t be able to get things back down to anywhere near the pre-pandemic pricing but, when combined, these actions should shave enough off your quote to make a difference.

The Hayabusa Shinkansen is the fastest train in Japan, reaching speeds of 320km/h. Picture: iStock.

My husband and I will arrive in Tokyo during Golden Week and would like a return trip on the Hayabusa Shinkansen in Gran Class. What’s the best way of buying tickets for this busy time?

The Hayabusa Shinkansen is the fastest train in Japan, reaching speeds of 320km/h, and Gran Class is the most luxurious way to experience it. 

The Japanese National Tourism Organization (JNTO) has made it clear that although you can usually buy point-to-point on the day, the trains are likely to be heavily booked that week – a series of national holidays falling from April 29 to May 5 next year – and you will be unlikely to get Gran Class tickets. 

However, if you buy a JR East Pass or full JR Pass, then you may be able to upgrade to Gran Class for this trip for an additional ¥10,000 (about $105) each week, but you can only reserve the seats one month in advance. For your particular situation, JNTO recommends buying point-to-point with online reservation exactly one month in advance through JR East (eki-net.com). Have fun.

You have plenty of options when it comes to Australia circumnavigation cruises departing and returning to Sydney. Picture: iStock.

I’m in my 80s and looking to do a Sydney return cruise around Australia. Is such a cruise available and what would be the best time of year to go? Is the single supplement going to be incredibly expensive?

You have plenty of options when it comes to Australia circumnavigation cruises departing and returning to Sydney. Princess Cruises has a range of 2024 options, starting from $7178 for a 28-day Round Australia sailing aboard Crown Princess, and Holland America Line has a 35-day Australia Circumnavigation cruise aboard the Westerdam departing Sydney in November and priced from $7934.

Cunard is offering a 30-night Australia Circumnavigation itinerary aboard Queen Elizabeth in October from $6449. At the pricier end, Viking Cruises has a new Grand Australia Circumnavigation cruise, which not only takes in Australia’s highlights but also Indonesia’s Komodo and Bali across 32 days. This one is priced from $26,195 and departs January 2025.

These aren’t the only options, of course. Search “Australia circumnavigation cruises” and you may find another cruise line that’s more in line with your interests and/or budget. What’s interesting here is that almost all of these cruises sail between October and December, although I do see Oceania Cruises also has a 35-day Australian Panorama (plus Bali and Komodo) cruise aboard the Regatta from $13,970 departing late December.

Cunard’s Queen Elizabeth and Oceania Cruises’ Regatta offer solo staterooms (you’ll have to get in quickly), while Princess and Viking Cruises occasionally waive the single supplement or, in some cases, reduce it. If you don’t have any luck in that department, you can expect to pay anywhere up to 200 per cent which is, essentially, the price of a second fare.

Originally published as Doc Holiday: Why is travel insurance so expensive?